Earnings on Watch: CONE Midstream Partners LP (CNNX)

CONE Midstream Partners LP owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service CONSOL’s and Noble Energy’s production in the Marcellus Shale in Pennsylvania and West Virginia. Its assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. It operates through three segments: Anchor Systems, Growth Systems and Additional Systems. Its Anchor Systems include developed midstream systems, including its three midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. Its Growth Systems are located in the dry gas regions of its dedicated acreage. Its Additional Systems include various gathering systems located in the wet gas regions of its dedicated acreage. The company was founded in 2014 and is based in Canonsburg, Pennsylvania.

Recent News:

The company will release financial results for the third quarter 2017 before market opening on Thursday, November 2, 2017 and hold a conference call to discuss those results on the same day at 10:00 a.m. Eastern Time.

For the three months ended June 30, 2017, the company reported net income of $29.0 million as compared to $23.2 million in the second quarter of 2016. Net cash provided by operating activities of $42.3 million as compared to $41.8 million.

The Board of Directors of its general partner, CONE Midstream GP LLC, has declared a cash distribution of $0.3025 per unit with respect to the third quarter of 2017. The distribution will be made on November 14, 2017 to unitholders of record as of the close of business on November 3, 2017.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CNNX’s strengths can be seen in its strong growth, strong profitability and robust solvency compared with its peers. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 47.18 with positive bias. We rate CONE Midstream Partners LP (CNNX) a STRONG BUY.